Form 4: Micron CEO Sanjay Mehrotra Executes Stock Options and Sells Shares Under 10b5-1 Plan
SEC Form 4
Micron's CEO, Sanjay Mehrotra, exercised stock options and sold shares of common stock under a pre-arranged Rule 10b5-1 trading plan.
Summary
- On June 4, 2024, Sanjay Mehrotra, the CEO and President of Micron Technology, exercised non-qualified stock options and sold shares of Micron's common stock.
- The transactions were executed under a pre-arranged Rule 10b5-1 trading plan adopted on May 15, 2023.
- Mehrotra exercised options for 7,000 shares at a price of $28.20.
- He then sold 6,282 shares at a weighted average price of $126.02 and 718 shares at a weighted average price of $127.15.
- Following these transactions, Mehrotra directly owns 719,049 shares of common stock.
- He also indirectly owns 371,629 shares through a grantor retained annuity trust (GRAT) for the benefit of himself and his family.
- Mehrotra retains ownership of 71,284 derivative securities (Non-qualified Stock Options).
Sentiment
Score: 5
Explanation: The document describes routine stock transactions under a pre-arranged plan, indicating a neutral sentiment.
Industry Context
Executive stock transactions are common and closely monitored, especially in the semiconductor industry. Rule 10b5-1 plans are frequently used to allow insiders to sell shares without concerns about insider trading, as the plan is pre-arranged.
Comparison to Industry Standards
- Executive compensation packages in the semiconductor industry often include stock options as a significant component.
- The use of 10b5-1 trading plans is a standard practice among executives at publicly traded companies to manage their stock holdings and avoid accusations of insider trading.
- Comparing Mehrotra's stock ownership and trading activity to peers at companies like Intel, Samsung, and TSMC would provide further context, but that data is not available in this document.
Stakeholder Impact
- The transactions may have a minor impact on shareholders due to the CEO's stock sales, but the pre-arranged nature of the plan mitigates concerns.
- Employees are unlikely to be directly affected by these transactions.
Key Dates
| Date | Description |
|---|---|
| 2023-05-15 | Date the Rule 10b5-1 trading plan was adopted by Sanjay Mehrotra. |
| 2024-06-04 | Date of the stock option exercise and share sales. |
| 2024-06-06 | Date of signature for the Form 4 filing. |
| 2025-05-08 | Expiration date of the Non-qualified Stock Options. |
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